Gojek will end their ride-hailing and package delivery operations in Vietnam starting September 16 after just six years of launching in the market. The step to close operations was taken because the Vietnamese market only contributed 1% to the company's transactions in the last second quarter.
The company is unable to compete with its rival Grab in Vietnam. This is the second time Gojek has withdrawn from the Indochina market after also closing their operations in Thailand three years ago. There were rumors that Gojek wanted to enter the Malaysian market in 2019 but the dream was buried after the Ministry of Transport refused to allow the operation of motorbikes as taxis in Malaysia. It comes after Dego Ride, which pioneered this service in Malaysia, was banned by JPJ in 2017.
The ride-hailing service market in Southeast Asia is shrinking and it is only dominated by large companies. Last February there was a report that GoTo, which is the parent company of Gojek, had held discussions to merge with Grab. This kind of market consolidation reduces consumer choice and only encourages monopolies.